Emergencies, especially financial ones, can occur at any time. Sometimes you have your reserve fund for such occasions. Sometimes they catch you off guard. In such a condition, the only option you can see is to borrow money to settle these emergencies.
However, things turn trickier when you need some cash urgently, but due to your bad credit history, you don’t know where to get financial help to resolve your urgent cash requirement. The lender decides whether to lend you or not when you apply to look for a loan or other credit like a credit card.
There are many things people worry about when applying for small loans for bad credit. However, you can relax a bit as you have LoanPig with you. LoanPig has loans specially designed for borrowers with bad credit history. They look ahead of your bad credit report. When assessing your loan application LoanPig focuses more on your current financial status and affordability.
Although people have many concerns when applying for a small loan or credit card when they have a bad credit score. Their mind is always playing different scenarios, such as –
- Will they accept my loan application?
- Is a credit card cheaper or a loan?
- How to get a credit card with my credit record?
- Will they accept my application for a credit card?
- Do I have another chance after a rejection?
- What will happen if I don’t get a loan or credit card?
In that case, read on to learn more about how you can get a credit card or loan with your bad credit history.
How to get a credit card with your bad credit history?
Credit cards are not bonds against guarantors or property. Your previous credit history and your current ability to pay are the sole basis of your eligibility to get a credit card. You may find it less ideal as the lender may restrict your options. Despite that, you can find lenders specialising in credit cards for people with bad credit history.
However, make sure you are borrowing a manageable amount of money and repaying it on time regularly. In this way, over time, you will improve your credit record.
How to get a loan with a bad credit score?
If you have a bad credit score, the lender may ask you to bring in a guarantor. To brief you on this, the guarantor is another person who will sign the credit agreement. They take responsibility for repaying the money if you fail to repay. It is one of the ways you can get a loan when you cannot borrow money on your own.
If you are bringing a guarantor to get a loan, provide their details. It is for the lender to check their creditworthiness. In that case, you should choose a guarantor with a good credit score. The guarantor has the same rights as the borrowers. They have the responsibility to pay if the borrowers do not pay.
They are equally responsible under the credit agreement as the borrower. If you are planning to be a guarantor for someone, make sure you know what you are up for and read every word in the agreement before you sign it.